The actuary for a superannuation fund caught in the collapse of Trio Capital has called on ACT Super to determine a crediting rate in a bid to finalise the calculation of members’ entitlements.
ACT Super had been working with the Australian Federation of Employers and Industry (AFEI) on outstanding information required for the Employers’ Federation of NSW Superannuation Plan, ACT Super director Shane O’Keeffe said in a letter to investors.
“I confirm that, based on the information provided by the AFEI, the plan’s actuary has undertaken an estimate of members’ entitlements. The actuary’s estimations have been based on a number of assumptions in respect of the plan and number of instructions provided by AFEI,” O’Keeffe said in the letter, dated 2 August.
“One of the key assumptions made by the actuary in his estimations is in relation to the crediting rate attributed to members’ entitlements. The crediting rate is based, in large part, on the investment returns (or losses) to the assets of the plan.
“ACT has been advised by the actuary that in order to make a determination of members’ entitlements, a crediting rate for the plan must be determined.”
He said ACT Super was seeking legal advice on the “the appropriate method” to calculate the rate for the plan.
“Once this advice is received, ACT Super will be in a position to work with the actuary to determine a crediting rate and finalise the calculation of members’ entitlements,” he said.
“Additionally, the calculation of the crediting rate is dependent on up-to-date audited financial statements for the plan. ACT Super is presently liaising with the plan’s administrator and the plan’s auditor to prepare the financial statements.”
The company expected to receive legal advice in respect of the crediting rate issue within the next two weeks, he said.
In terms of the progress of the plan’s wind-up, he said work was continuing in that area.
“ACT Super is continuing to progress the winding up of the plan as we are obligated to do under the SIS (Superannuation Industry (Supervision)) Regulations. Given the plan has commenced winding up under the SIS Regulations, ACT Super has been advised that it would only be possible for the winding up to cease by application to the court,” he said.
ACT Super was appointed acting trustee of the Employers Federation of NSW Superannuation Plan as well as three other funds, Astarra Superannuation Plan, Astarra Personal Pension Plan and My Retirement Plan, in September 2009.
At the time, the four funds were believed to have about 10,000 members and their last reported assets as at the end of September 2009 totalled $300 million, ASIC said in a statement.
No further details were available for other Trio associated funds under ACT Super’s trusteeship.
Trio Capital collapsed in late 2009, resulting in the loss of more than $100 million in investor funds.
